10 Best Long Term Stocks to Buy According to Hedge Funds

In this article, we will discuss the 10 Best Long Term Stocks to Buy According to Hedge Funds.

On June 25, Allan Small, Senior Investment Advisor at Allan Small Financial Group, appeared on BNN Bloomberg to discuss investment opportunities and talk about the state of the market, which is trading near all-time highs but is largely driven by a handful of companies. Small noted that while the market has risen like a rocket ship rather than climbing the traditional escalator, he observed that leadership is not lifting all boats. Regarding the broader tech sector, Small observed that not all tech companies are performing equally. While the chip and semiconductor industries have seen success, some Mag 7 names have faced recent sell-offs. He viewed this as a positive development, as it allows investors to trim profits from past high-flyers and rotate capital into high-quality companies that have not yet kept up.

Addressing the question of how long the current market trend can last, Small advised investors to maintain a realistic perspective. Statistics show that the S&P 500 historically falls 5% to 10% a couple of times a year, and he suggested that investors should expect a pullback (possibly in late summer or early fall) without panic. He reminded investors that while the S&P 500 is up about 70%, many have seen higher returns due to heavy tech exposure, making it crucial to understand the drivers behind current market movements. Small emphasized the importance of diversification and noted that even with the market at highs, many quality companies are trading at lower valuations. He described his strategy as looking for companies with growing earnings and top-line numbers that are trading cheaply. He suggested that investors stay diversified across sectors like banking, pharma, and retail to mitigate the impact of potential tech pullbacks.

Against this backdrop, lets look at some of the best long term stocks to buy according to hedge funds.

Our Methodology

We sifted through financial media reports to compile a list of stocks widely discussed for their long-term potential, and limited our final selection to companies that have recently reported noteworthy developments likely to impact investor sentiment. These stocks are also popular among analysts and elite hedge funds.

Note: All data was sourced on June 26. 

Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Insider Monkey’s quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 599.2% since May 2014, beating its benchmark by 372 percentage points (see more details here).

10 Best Long Term Stocks to Buy According to Hedge Funds

10. Medtronic (NYSE:MDT)

Number of Hedge Fund Holders: 60

Medtronic (NYSE:MDT) is one of the best long term stocks to buy according to hedge funds. On June 8, Medtronic received FDA 510(k) clearance for its Nellcor pulse oximetry system featuring the new Nell-EQ intelligent processor. This technology is engineered to provide more consistent and reliable pulse rate and oxygen saturation monitoring across various patient populations, skin tones, and clinical environments. The clearance follows positive verification study results and the device’s previous designation under the FDA’s Safer Technologies Program.

The development addresses historical challenges regarding performance variability in pulse oximetry based on patient physiology and skin tone. Clinical studies for the Nell-EQ system used participants across a full spectrum of skin tones, using advanced signal processing to interpret optical signals into accurate readings. Beyond SpO₂ and pulse rate, the platform supports metrics including Heart Rate Variability and the Perfusion Index, aligning with evolving regulatory standards for inclusive patient monitoring.

Medtronic (NYSE:MDT) intends to launch the Nell-EQ-enabled system globally in the coming months, supported by comprehensive clinician education and training resources. This release reinforces the company’s focus on equitable care and its commitment to advancing monitoring technology. Clinicians can also access existing educational materials through the Medtronic Academy to support the effective use of pulse oximetry across the continuum of care.

Medtronic (NYSE:MDT) is a medical technology company that manufactures, distributes, and sells device-based medical services and therapies. It operates under four primary segments: Cardiovascular Portfolio, Neuroscience Portfolio, Medical Surgical Portfolio, and Diabetes Operating Unit.

9. Lowe’s Companies Inc. (NYSE:LOW)

Number of Hedge Fund Holders: 66

Lowe’s Companies Inc. (NYSE:LOW) is one of the best long term stocks to buy according to hedge funds. On May 21, Lowe’s introduced Material Lists, an AI-powered tool designed to streamline the estimation process for Pro customers. This technology converts various formats (including handwritten notes, photos, and spreadsheets) into quote-ready orders in minutes. Supporting both English and Spanish, the feature is engineered to reduce manual data entry and minimize errors, allowing Pros to respond faster to their own clients.

By digitizing raw material information, this tool addresses a significant pain point for Pros who often struggle to balance administrative tasks with project management. The solution uses SKU matching and automated list digitization developed by Lowe’s Technology to organize product information efficiently. This allows business owners to spend less time on back-office work and more time managing onsite projects and serving customers.

Material Lists joins a suite of digital resources available on Lowes.com and the company’s app, including Blueprint Takeoffs and Pro Extended Aisle. These connected, AI-driven tools are part of a broader initiative to help MyLowe’s Pro Rewards members manage quotes, track orders, and handle purchasing workflows more effectively. Lowe’s Companies Inc.’s (NYSE:LOW) continues to focus on these technological investments to help Pro customers improve operational efficiency and stay competitive.

Lowe’s Companies Inc. (NYSE:LOW) operates as a home improvement retailer in the US and Canada.

8. CrowdStrike Holdings Inc. (NASDAQ:CRWD)

Number of Hedge Fund Holders: 79

CrowdStrike Holdings Inc. (NASDAQ:CRWD) is one of the best long term stocks to buy according to hedge funds. On June 16, CrowdStrike extended its Falcon AI Detection and Response/AIDR platform to function as a unified security control plane for enterprise AI. By integrating with a broad ecosystem of AI gateway partners (including Databricks, Google Cloud, Microsoft Azure, Kong, and others), the company aims to address the fragmented visibility and increased attack surfaces that arise as organizations move AI into production. This approach enables consistent policy enforcement across diverse gateways, APIs, and models without necessitating architectural changes.

The platform provides comprehensive protection by securing the entire AI interaction layer, including prompts, responses, and agents, against threats such as data leakage, prompt injection, and jailbreak attempts. By capturing and correlating telemetry across users, applications, and models, CrowdStrike offers unified visibility into AI activity. Furthermore, these protections feed into the Falcon Next-Gen SIEM, allowing for cross-domain detection and response across an organization’s entire environment.

Through this open ecosystem, CrowdStrike Holdings Inc. (NASDAQ:CRWD) enables real-time, inline security controls that operate without disrupting AI workflows. Industry partners are leveraging these integrations to help businesses operationalize AI while maintaining necessary governance, risk management, and security guardrails. This collaborative effort is designed to allow enterprises to scale their AI initiatives confidently while ensuring that security remains consistent across all deployments.

CrowdStrike Holdings Inc. (NASDAQ:CRWD) is a technology company that offers cybersecurity solutions through its unified platform and a SaaS subscription-based model.

7. Lockheed Martin Corporation (NYSE:LMT)

Number of Hedge Fund Holders: 83

Lockheed Martin Corporation (NYSE:LMT) is one of the best long term stocks to buy according to hedge funds. On June 3, Lockheed Martin successfully intercepted a Group 3 drone using its JAGM missile fired from a GRIZZLY containerized launcher, managed by the Sanctum C-UAS system. The entire end-to-end integration, from hardware-in-the-loop to live-fire testing, was completed in under 45 days. This demonstration proves the system’s ability to rapidly detect, track, and neutralize drone threats in an evolving combat environment.

The GRIZZLY launcher is designed for agility and affordability, featuring a containerized, low-infrastructure footprint that can be deployed on both land and maritime platforms. Using wireless communication between sensors and the battle manager, the system enables modular, distributed operations. This setup allows for rapid deployment while providing a scalable kill web against a wide range of UAV threats.

This achievement highlights Lockheed Martin Corporation’s (NYSE:LMT) focus on delivering cost-effective, layered defense capabilities that can be quickly scaled for the warfighter. By combining proven weapon systems with advanced sensor and mission management software, the company offers a flexible solution to protect critical assets. The modular nature of the technology ensures it can operate as a standalone system or integrate with existing command and control networks.

Lockheed Martin Corporation (NYSE:LMT) was founded in 1995 through the merger of Lockheed Corporation and Martin Marietta (tracing its earliest aviation roots to 1912) and is headquartered in Bethesda, Maryland. It is an aerospace, defense, and advanced technology company.

6. The Charles Schwab Corporation (NYSE:SCHW)

Number of Hedge Fund Holders: 101

The Charles Schwab Corporation (NYSE:SCHW) is one of the best long term stocks to buy according to hedge funds. On June 12, Schwab Asset Management announced the closure and liquidation of the Schwab Ariel Opportunities ETF. The fund will cease trading on the NYSE Arca after the market closes on July 17, at which point it will be delisted and stop accepting new creation orders. Shareholders have until this date to sell their shares through their broker-dealers.

The final liquidation is scheduled for approximately July 24. Any shareholders still holding positions at the close of trading on July 17 will have their remaining shares redeemed, with proceeds distributed promptly following the liquidation date.

Leading up to the final liquidation, the fund’s assets may no longer be managed according to its original investment objectives and strategies. Investors are encouraged to consider these changes and the upcoming timeline for their holdings.

The Charles Schwab Corporation (NYSE:SCHW) is a financial services holding company. Through its subsidiaries, it provides wealth management, securities brokerage, banking, asset management, custody, and financial advisory services.

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